French 10-year OAT yield falls to 4.76%, a near-week low
Updated
Summary
France’s 10-year OAT yield fell to 4.76%, its lowest level in nearly a week, amid broader European bond-market declines during a global flight to safety following an equity sell-off.
Why it matters
Despite the decline, French borrowing costs remain near their highest levels in more than two decades; record public debt and political hurdles complicate efforts to consolidate public finances.
ECB President Christine Lagarde played down speculation about central bank intervention, saying the primary solution lies in France’s fiscal policies.
What remains uncertain
Parliamentary support for substantial spending cuts remains uncertain; the government aims to reduce the deficit to 5% of GDP by 2027.
The ECB is expected to deliver another rate hike in December.